Pet Palace Corporation was organized on January 2, 2016, to operate a chain of pet supply stores. The firm is authorized to issue 50,000 shares of $10 par-value common stock and 18,000 shares of $50 par-value, 8 percent preferred stock. The preferred stock is noncumulative and nonparticipating. Selected transactions that took place during January 2016 are given below.

Instructions

1. Set up the following general ledger accounts:

101 Cash

114 Subscriptions Receivable-Common Stock

115 Subscriptions Receivable-Preferred Stock

301 Common Stock

302 Common Stock Subscribed

305 Paid-in Capital in Excess of Par Value-Common

311 Preferred Stock

312 Preferred Stock Subscribed

315 Paid-in Capital in Excess of Par Value-Preferred

Record the transactions listed below in general journal form and post them to the general ledger accounts.

2. Prepare the Stockholders' Equity section of a balance sheet for Pet Palace Corporation as of January 31, 2016.

DATE __TRANSACTIONS

Jan. 2 The corporation received its corporate charter. (Make a memorandum entry.)

3 Issued 3,000 shares of common stock for cash at $10 per share to Alice Young.

3 Issued 1,500 shares of preferred stock for cash at $50 per share to Marcia Greene.

10 Issued 200 shares of common stock for cash at $14 per share to Mark Merki.

12 Received a subscription for 500 shares of common stock at $12 per share from Nora Barnett, payable in two installments due in 5 and 15 days.

14 Received a subscription for 500 shares of preferred stock at $54 per share from Sun Wu, payable in two installments due in 10 and 20 days.

17 Received payment of a stock subscription installment due from Nora Barnett (one-half of purchase price-see January 12 transaction).

24 Received payment of a stock subscription installment due from Sun Wu (one-half of purchase price-see January 14 transaction).

27 Received the balance due from Nora Barnett; issued the stock.

Analyze: What percentage of authorized common stock has been issued at January 27, 2016?